Furthering America’s foreign policy interest in democracy
free markets while fixing lives
Spends less than ½ of a percent of federal budget
Starts back with Marshall Plan
George C. Marshall laid the foundation for this program of assistance from the U.S. to the countries of Europe after World War II
This was approved by congress in 1948
Truman Administration’s Point Four Program
1961- Foreign Assistance Act signed in law
USAID created by executive order
Independent federal government agency receives guidance from Secretary of State
Supports long-term and equitable economic growth
Advances U.S. foreign policy objectives
Provides assistance in 5 regions of the world: Sub-Saharan Africa ; Asia; Latin America; Caribbean; Europe; Eurasia; and Middle East
Headquarters in Washington, D.C
Partnership with: private voluntary organizations; indigenous organizations; universities; American businesses; international agencies; other governments; other U.S. government agencies
Working relationships with: 3,500 American companies;
Relationship with over 300 U.S based private voluntary organizations
This whole citation is done by Samantha Danner Economy in Crisis. 11/13/08 11/13/08 <http://www.economyincrisis.org/>. ·Many of our industries are foreign owned o97% of U.S. Sound Recording Industries o79% of U.S. Commodity Contracts Dealing o75% of Motion Picture and Sound Recording Industries ·We also spend a high percentage of our consumption needs on foreign goods o90% on footwear o87% on Audio and Video equipment o86% on other leather products
Whole Citation added by Kayla Burdette
Roberts, Paul Craig. "America's Economic Crisis Is Beyond The Reach of Traditional Solutions ." 13 11 2008. Economy in Crisis. 11/13/08 <http://www.economyincrisis.org/articles/show/2069>. ·Robert Reich calls it a “Mini Depression” ·Mikhail Kahzin (Russian Economist)~ “US will soon face a second ‘Great Depression’” ·Robert Reich recommends spending on projects that provide more jobs ·US unemployment 10 million ·Home foreclosures in millions ·Inflation is one cause of unemployment ·Bailout funds are useless- doesn’t change falling employment or the mortgage crisis ·Other suggested solutions: oEconomic minister oNo more free trade oGet out of WTO agreement oDiscourage outsourcing US employment
Whole Citation added by Kayla Burdette
Economic Recession. 2008 11/13/08 <http://recession.org/>. Notes: ·Economic crises happen when people can’t pay their taxes. ·Usually it happens when prices are high. ·Decline in general business activity.
·Americans economy may be entering a state of free fall. Every day brings more bad news about the sub-prime mortgage debacle, about home foreclosures, construction industry slowdowns, a credit drought for consumers and businesses, oil price shocks and the open-ended devaluation of the dollar. ·Together with the debacle in Iraq and the political implosion of the Republican Party, this economic collapse could make the presidential election of 2008 a turning point in American political history. ·By any measure, our current economic suffering pales in comparison with what the nation endured from 1929 through 1939. ·Most economists are predicting a long, difficult period ahead. ·The great depression was a devastating time for America. Whole citation done by: Korhan Yeniceli
Governments cutting back on promised responsibilities: nations feeling trade not aid; criticized rich countries cutting back aid- was agreed by UN
Rich nations agreement at UN-0.7% GNI (Gross National Income) to aid
0.2-0.4% GNI actually going to Aid- $100 billion short
USA’s aid GNI percent lower than any other industrialized nation
2001- USA- largest donor of aid in terms of raw dollar
2001-2004 continual increase in aid- most due to geostrategic concerns of donor
Debt relief in ODA-0ffical Development Agency
ODA rose slightly
Promised increase still below 0.7% target
US aid poor in percentage terms
Americans privately give $34 billion overseas
US official aid- $15 billion per year
International giving by US foundations- $3.4 billion
Charity by US businesses- $4.9billion annually
American NGO’s: $9.7 billion in grants, goods and volunteers
Religious overseas missionaries: $4.5 billion
Includes Health care; literacy training; relief and development
US college and scholarships to foreign students: $1.7 billion
Personal remittances from US: $47 billion
Factors of large decline in aid: tighter budget of country; ideology shift on government and markets; increasing number of countries in need for aid
$6.9 billion (9% of all aid) not targeted for poverty reduction
$5.7 billion (7%) double counted as debt relief
$11.8 billion (15%) on over-priced, ineffective technical assistance
$2.5 billion (3%) lost through aid tying
$8.1 billion (10%) lost through poor donor co-ordination
$2.1 billion (3%) on immigration related spending at least $70 (0.1%) million on excessive administration costs.
Whole citation completed by Samantha Danner
Shah, Anup. US and Foreign Aid Assistance. 4/27/08 Global Issues. 11/14/08 <http://www.globalissues.org/article/35/us-and-foreign-aid-assistance#AidisActuallyHamperingDevelopment>. ·U.S. has given aid to countries that are possible threats to National security (Middle East, Central America and Caribbean in CW times) ·Sweden aids progressive societies ·France donates to those that have extensive commercial ties with France ·Japan is same as France ·In giving money to less fortunate countries we are becoming one ourselves ·It could be better to build industry rather than give money ·We are being criticized for giving less though our plan is to increase ·We need to donate because debt relief is down ·Our own debt relief is down ·Bad economy = good health
America can not afford to fight against global poverty
U.S. needs to demonstrate renewed leadership
Show national spirit by investing wisely
Doubling aid to Africa
$25 billion a year (2005-2010)
Further $25 billion (2010-2015)
Annual aid already doubled to Africa
Doubled from $12.7-23.7 billion in 2003
Add further increase by 50% in 2015
Japan only give one trillion yen to aid ($10 billion US dollars)
Ten Global Economic Challenges Facing 44th president
1-restoring financial stability: strengthen global finance system
2- Setting the right green agenda: working on pollution
3- Exercising Smart Power: work on world’s poorest: not only make America feel good but make others feel good about America
4-Reimaging Global Trade: enforce trade rules, invest in economic competitiveness
5-Navagating China’s raise: America look for ways to improve our issues
6-Have a broad trade
7- Engaging in emerging India: helping millions out of poverty in India
8-Revitalizing ties to Latin America: stronger partner to neighbors, engage in issues of concern
9-Supporting Africa’s growth turnaround: become a stronger and steadier partner to Africa
10- Pursuing positive agenda for middle east
Notes done by Samantha Danner Usborne, David. USA 2008: The Great Depression. 4/1/08 The Independent World. 11/14/08 <http://www.independent.co.uk/news/world/americas/usa-2008-the-great-depression-803095.html>. ·Quote- David Usborne “Food stamps are the symbol of poverty in the US. In the era of the credit crunch, a record 28 million Americans are now relying on them to survive – a sure sign the world's richest country faces economic crisis.” ·Highest since US Food Assistance was developed in 1960s ·2007- 26.5 million ·Increasing job loss ·Increasing house foreclosures ·Fast rising prices ·Maryland, Arizona, and Florida report 10% increase in food stamp usage Done by Kayla Burdette Patricof, Alan. "America can profit from Foriegn aid done right." The Huffington Post 14 11 2008. Huffington Post. 2 11 2008. november 14,2008 <http://www.huffingtonpost.com/alan-patricof/america-can-profit-from-f_b_70928.html>.
U.S. should invest most of the money instead of donating
Congress passed legislation creating Millennium Challenge Corporation
MCC changing the way most of the foreign aid is given out
2002 Monterrey Conference Bush called for increase of aid to meet goals (UN Millennium Developmental)
Reducing percent of people w/ poverty in 15 years (foreign countries)
Americans need to increase responsibility from aid recipients
Bush increasing aid by $5billion every year-bringing
closer to objective of 0.7% of America’s Gross National Product
MCC: government agency chaired by Secretary of State
If country prepared to govern justly/meet well designed requirements:
eligible for assistance from MCC
Need benchmarks for advancing funds:
have to continue to meet 16 governance indicators
MCC in subject of criticism in Congress
$6 billion given to MCC only $92 million actually been advanced to countries
MCC: $3 billion given to countries that worked hard to qualify
By end of year $5 billion put towards countries that qualify
A lot of countries spend years trying to improve their government to qualify
MCC only getting $1.2 billion for this year
MCC wanted $3.0 billion
MCC keeps getting below amount asked for from Congress
Funding cuts making MCC less effective
Notes done by Samantha Danner
The National Economy. 10/20/08 American Research Group, Inc. 11/18/08 http://americanresearchgroup.com/economy/. ·Oct. 54% of Americans believe the National economy is getting worse ·Oct. A mere 6% think it’s getting better ·Sept. 82% of Americans believe it is getting worse ·Oct. 56% believe that a year from now it will be better ·Oct. 54% think we are in a recession ·Oct. 32% believe the household financial situation is getting worse ·Sept. 0% thought it was getting better
Whole Citation by Kayla Burdette http://www.globalissues.org/article/35/us-and-foreign-aid-assistance - Copy right: 1998-2008 Global Issues ·The US is the wealthiest, strongest and most influential nation. ·It’s worth seeing how their actions or inaction affect other nations. ·The World Bank and even helping to formulate the United Nations over 50 years ago, their actions can be felt around the world. ·Around the world for numerous years, many Nations have criticized the US for cutting back on its promised responsibilities ·The US is a major part of the International Monetary Fund ·When the US has provided aid, it has been tied to its own foreign policy objectives. ·Many rich nations that provide aid could be criticized in a similar way.
Whole Citation By KC Brewster http://www.devex.com/blogs/17/blogs_entries/56049 - Copy right: 2000-2008 Devex ·Foreign aid is one of the most dependable stable sectors. ·Historically growing about 5 percent a year with comparatively minor ups and downs. ·Until recently. A global agreement emerged in the past years on the need for larger aid budgets. ·And total spending for foreign aid is more then double the budget. ·Foreign aid has just reached approximately around $200 billion per year. ·With 1/3 of it coming from foundations, non-governmental organizations ·This sudden uptake in aid spending does make our community more vulnerable to an economic slowdown than ever before, but it remains a fairly stable sector. Whole Citation By KC Brewster Landler, Mark. "World Leaders Vow Joint Push to Aid Economy." The New York Times 15 11 2008. 15 11 2008. November 18, 2008 <http://www.nytimes.com/2008/11/16/business/worldbusiness/16summit.html?em>.
Facing biggest economic crisis in decades
Countries agreed to work on improving the economy
Putting off decisions on how to fix financial regulations till next year
Reflected measures that countries are already doing to fix crisis
Meeting for setting financial crisis regulations
Many countries including France is putting most of the economic crisis blame on U.S.
Europeans thought of setting up colleges of supervisors
Supervisors meet regularly to share information about global banks
Expand membership of Financial Stability Forum
Forum is group of finance ministers and central bankers from industrial countries
Bush apposes cross-border authority
Notes by Samantha Danner
This article was first published on September 29, 2008 http://knowledge.insead.edu/USEconomyBailout080911.cfm ·The US economy might go into a depression if the $700 billion rescue package fails to revive the ailing banking sector.- ·A great depression right now is still unlikely but it’s not impossible to happen anymore. ·Deeper problems in the financial sector like Lehman Brothers filed for bankruptcy; Bank of America took over Merrill Lynch, while JPMorgan took over Washington Mutual. ·The financial sector’s worsening has accelerated since Bear Stearns was jointly rescued by the Fed and JPMorgan from the brink of collapse in March. ·The bailout money does not solve the problems of the economy but nevertheless it’s a necessary thing to do so we can stop the collapse of our economic system. ·More banks could fail if distressed financial assets are not taken off their balance sheets because these assets continue to get worse every day, creating more doubt for the investors and bank depositors. ·Such a situation could force a fire sale of bank assets to please stress from investors and depositors, further deteriorating banks’ balance sheets.
Whole citation by KC Brewster Zunes, Stephen. The Strategic Functions of U.S. Aid to Israel. November 18,2008 <http://www.wrmea.com/html/us_aid_to_israel.htm>.
·America keeps giving ·Nearly 241 billion ·Donations for 2002 set a new high, rising 1 percent over 200’1 ·Estimated 240.92 billion in gifts equaled 2.3 percent of US gross domestic product ·US gave between $6 and $15 billion in foreign aid between 1995 and 1999 ·The US ranks twenty-second of the 22 most developed nations ·US manages giving 0.1 GDP ·The USA is a generous nation of people ·USA enforces aggressive policies and aggressive pursue economic interests in all the other countries. ·Foreign aid grants and loans $74,157,600,000 ·US have offered Israel an additional $2 billion in loan guarantees. ·$16.4 billion in Us military loans were converted to grants.
Notes done by: Korhan Yeniceli http://www.fool.com/investing/general/2006/11/08/what-causes-a-recession.aspx The Motley Fool Legal information: 1995-2008 the motley fool ·What causes a recession? ~ Increase in oil prices. ~ Stock market falls unlikely. ~Analysts say stock sell-off may cool the economy. ~Households saving more. ~ Overspending and high taxes ~ Asian contagion ~Corporate fraud and investor pessimism
Notes by KC Brewster
This is USAID. June 7,2008 USAID. November 13,2008 http://www.usaid.gov/about_usaid/.
- Extend helping hand to overseas
- Make a better life
- Recover from disaster
- Striving to live free/in democratic country
- Do it to show world we are caring
- Twofold purpose
- Furthering America’s foreign policy interest in democracy
- free markets while fixing lives
- Spends less than ½ of a percent of federal budget
- Starts back with Marshall Plan
- George C. Marshall laid the foundation for this program of assistance from the U.S. to the countries of Europe after World War II
- This was approved by congress in 1948
- Truman Administration’s Point Four Program
- 1961- Foreign Assistance Act signed in law
- USAID created by executive order
- Independent federal government agency receives guidance from Secretary of State
- Supports long-term and equitable economic growth
- Advances U.S. foreign policy objectives
- Provides assistance in 5 regions of the world: Sub-Saharan Africa ; Asia; Latin America; Caribbean; Europe; Eurasia; and Middle East
- Headquarters in Washington, D.C
- Partnership with: private voluntary organizations; indigenous organizations; universities; American businesses; international agencies; other governments; other U.S. government agencies
- Working relationships with: 3,500 American companies;
- Relationship with over 300 U.S based private voluntary organizations
This whole citation is done by Samantha DannerEconomy in Crisis. 11/13/08 11/13/08 <http://www.economyincrisis.org/>.
· Many of our industries are foreign owned
o 97% of U.S. Sound Recording Industries
o 79% of U.S. Commodity Contracts Dealing
o 75% of Motion Picture and Sound Recording Industries
· We also spend a high percentage of our consumption needs on foreign goods
o 90% on footwear
o 87% on Audio and Video equipment
o 86% on other leather products
Whole Citation added by Kayla Burdette
Roberts, Paul Craig. "America's Economic Crisis Is Beyond The Reach of Traditional Solutions ." 13 11 2008. Economy in Crisis. 11/13/08 <http://www.economyincrisis.org/articles/show/2069>.
· Robert Reich calls it a “Mini Depression”
· Mikhail Kahzin (Russian Economist)~ “US will soon face a second ‘Great Depression’”
· Robert Reich recommends spending on projects that provide more jobs
· US unemployment 10 million
· Home foreclosures in millions
· Inflation is one cause of unemployment
· Bailout funds are useless- doesn’t change falling employment or the mortgage crisis
· Other suggested solutions:
o Economic minister
o No more free trade
o Get out of WTO agreement
o Discourage outsourcing US employment
Whole Citation added by Kayla Burdette
Economic Recession. 2008 11/13/08 <http://recession.org/>.
Notes:
· Economic crises happen when people can’t pay their taxes.
· Usually it happens when prices are high.
· Decline in general business activity.
· Americans economy may be entering a state of free fall. Every day brings more bad news about the sub-prime mortgage debacle, about home foreclosures, construction industry slowdowns, a credit drought for consumers and businesses, oil price shocks and the open-ended devaluation of the dollar.
· Together with the debacle in Iraq and the political implosion of the Republican Party, this economic collapse could make the presidential election of 2008 a turning point in American political history.
· By any measure, our current economic suffering pales in comparison with what the nation endured from 1929 through 1939.
· Most economists are predicting a long, difficult period ahead.
· The great depression was a devastating time for America.
Whole citation done by: Korhan Yeniceli
Shah, Anup. U.S. and Foriegn Aid Assistance. April 27,2008 Global Issues. November 13,2008 <http://www.globalissues.org/article/35/us-and-foreign-aid-assistance#ForeignAidNumbersinChartsandGraphs>.
- Governments cutting back on promised responsibilities: nations feeling trade not aid; criticized rich countries cutting back aid- was agreed by UN
- Rich nations agreement at UN-0.7% GNI (Gross National Income) to aid
- 0.2-0.4% GNI actually going to Aid- $100 billion short
- USA’s aid GNI percent lower than any other industrialized nation
- 2001- USA- largest donor of aid in terms of raw dollar
- 2001-2004 continual increase in aid- most due to geostrategic concerns of donor
- Debt relief in ODA-0ffical Development Agency
- ODA rose slightly
- Promised increase still below 0.7% target
- US aid poor in percentage terms
- Americans privately give $34 billion overseas
- US official aid- $15 billion per year
- International giving by US foundations- $3.4 billion
- Charity by US businesses- $4.9billion annually
- American NGO’s: $9.7 billion in grants, goods and volunteers
- Religious overseas missionaries: $4.5 billion
- Includes Health care; literacy training; relief and development
- US college and scholarships to foreign students: $1.7 billion
- Personal remittances from US: $47 billion
- Factors of large decline in aid: tighter budget of country; ideology shift on government and markets; increasing number of countries in need for aid
- $6.9 billion (9% of all aid) not targeted for poverty reduction
- $5.7 billion (7%) double counted as debt relief
- $11.8 billion (15%) on over-priced, ineffective technical assistance
- $2.5 billion (3%) lost through aid tying
- $8.1 billion (10%) lost through poor donor co-ordination
- $2.1 billion (3%) on immigration related spending at least $70 (0.1%) million on excessive administration costs.
Whole citation completed by Samantha DannerShah, Anup. US and Foreign Aid Assistance. 4/27/08 Global Issues. 11/14/08 <http://www.globalissues.org/article/35/us-and-foreign-aid-assistance#AidisActuallyHamperingDevelopment>.
· U.S. has given aid to countries that are possible threats to National security (Middle East, Central America and Caribbean in CW times)
· Sweden aids progressive societies
· France donates to those that have extensive commercial ties with France
· Japan is same as France
· In giving money to less fortunate countries we are becoming one ourselves
· It could be better to build industry rather than give money
· We are being criticized for giving less though our plan is to increase
· We need to donate because debt relief is down
· Our own debt relief is down
· Bad economy = good health
Whole citation by kayla Burdette
Foriegn Aid. November 14, 2008 Brookings intitution. november 14,2008 <http://www.brookings.edu/topics/foreign-aid.aspx?gglid=ggl_aid1>.
- America can not afford to fight against global poverty
- U.S. needs to demonstrate renewed leadership
- Show national spirit by investing wisely
- Doubling aid to Africa
- $25 billion a year (2005-2010)
- Further $25 billion (2010-2015)
- Annual aid already doubled to Africa
- Doubled from $12.7-23.7 billion in 2003
- Add further increase by 50% in 2015
- Japan only give one trillion yen to aid ($10 billion US dollars)
- Ten Global Economic Challenges Facing 44th president
- 1-restoring financial stability: strengthen global finance system
- 2- Setting the right green agenda: working on pollution
- 3- Exercising Smart Power: work on world’s poorest: not only make America feel good but make others feel good about America
- 4-Reimaging Global Trade: enforce trade rules, invest in economic competitiveness
- 5-Navagating China’s raise: America look for ways to improve our issues
- 6-Have a broad trade
- 7- Engaging in emerging India: helping millions out of poverty in India
- 8-Revitalizing ties to Latin America: stronger partner to neighbors, engage in issues of concern
- 9-Supporting Africa’s growth turnaround: become a stronger and steadier partner to Africa
- 10- Pursuing positive agenda for middle east
Notes done by Samantha DannerUsborne, David. USA 2008: The Great Depression. 4/1/08 The Independent World. 11/14/08 <http://www.independent.co.uk/news/world/americas/usa-2008-the-great-depression-803095.html>.
· Quote- David Usborne “Food stamps are the symbol of poverty in the US. In the era of the credit crunch, a record 28 million Americans are now relying on them to survive – a sure sign the world's richest country faces economic crisis.”
· Highest since US Food Assistance was developed in 1960s
· 2007- 26.5 million
· Increasing job loss
· Increasing house foreclosures
· Fast rising prices
· Maryland, Arizona, and Florida report 10% increase in food stamp usage
Done by Kayla Burdette
Patricof, Alan. "America can profit from Foriegn aid done right." The Huffington Post 14 11 2008. Huffington Post. 2 11 2008. november 14,2008 <http://www.huffingtonpost.com/alan-patricof/america-can-profit-from-f_b_70928.html>.
- U.S. should invest most of the money instead of donating
- Congress passed legislation creating Millennium Challenge Corporation
- MCC changing the way most of the foreign aid is given out
- 2002 Monterrey Conference Bush called for increase of aid to meet goals (UN Millennium Developmental)
- Reducing percent of people w/ poverty in 15 years (foreign countries)
- Americans need to increase responsibility from aid recipients
- Bush increasing aid by $5billion every year-bringing
- closer to objective of 0.7% of America’s Gross National Product
- MCC: government agency chaired by Secretary of State
- If country prepared to govern justly/meet well designed requirements:
- eligible for assistance from MCC
- Need benchmarks for advancing funds:
- have to continue to meet 16 governance indicators
- MCC in subject of criticism in Congress
- $6 billion given to MCC only $92 million actually been advanced to countries
- MCC: $3 billion given to countries that worked hard to qualify
- By end of year $5 billion put towards countries that qualify
- A lot of countries spend years trying to improve their government to qualify
- MCC only getting $1.2 billion for this year
- MCC wanted $3.0 billion
- MCC keeps getting below amount asked for from Congress
- Funding cuts making MCC less effective
Notes done by Samantha DannerThe National Economy. 10/20/08 American Research Group, Inc. 11/18/08 http://americanresearchgroup.com/economy/.
· Oct. 54% of Americans believe the National economy is getting worse
· Oct. A mere 6% think it’s getting better
· Sept. 82% of Americans believe it is getting worse
· Oct. 56% believe that a year from now it will be better
· Oct. 54% think we are in a recession
· Oct. 32% believe the household financial situation is getting worse
· Sept. 0% thought it was getting better
Whole Citation by Kayla Burdette
http://www.globalissues.org/article/35/us-and-foreign-aid-assistance -
Copy right: 1998-2008
Global Issues
· The US is the wealthiest, strongest and most influential nation.
· It’s worth seeing how their actions or inaction affect other nations.
· The World Bank and even helping to formulate the United Nations over 50 years ago, their actions can be felt around the world.
· Around the world for numerous years, many Nations have criticized the US for cutting back on its promised responsibilities
· The US is a major part of the International Monetary Fund
· When the US has provided aid, it has been tied to its own foreign policy objectives.
· Many rich nations that provide aid could be criticized in a similar way.
Whole Citation By KC Brewster
http://www.devex.com/blogs/17/blogs_entries/56049 -
Copy right: 2000-2008
Devex
· Foreign aid is one of the most dependable stable sectors.
· Historically growing about 5 percent a year with comparatively minor ups and downs.
· Until recently. A global agreement emerged in the past years on the need for larger aid budgets.
· And total spending for foreign aid is more then double the budget.
· Foreign aid has just reached approximately around $200 billion per year.
· With 1/3 of it coming from foundations, non-governmental organizations
· This sudden uptake in aid spending does make our community more vulnerable to an economic slowdown than ever before, but it remains a fairly stable sector.
Whole Citation By KC Brewster
Landler, Mark. "World Leaders Vow Joint Push to Aid Economy." The New York Times 15 11 2008. 15 11 2008. November 18, 2008 <http://www.nytimes.com/2008/11/16/business/worldbusiness/16summit.html?em>.
- Facing biggest economic crisis in decades
- Countries agreed to work on improving the economy
- Putting off decisions on how to fix financial regulations till next year
- Reflected measures that countries are already doing to fix crisis
- Meeting for setting financial crisis regulations
- Many countries including France is putting most of the economic crisis blame on U.S.
- Europeans thought of setting up colleges of supervisors
- Supervisors meet regularly to share information about global banks
- Expand membership of Financial Stability Forum
- Forum is group of finance ministers and central bankers from industrial countries
- Bush apposes cross-border authority
Notes by Samantha DannerThis article was first published on September 29, 2008
http://knowledge.insead.edu/USEconomyBailout080911.cfm
· The US economy might go into a depression if the $700 billion rescue package fails to revive the ailing banking sector.-
· A great depression right now is still unlikely but it’s not impossible to happen anymore.
· Deeper problems in the financial sector like Lehman Brothers filed for bankruptcy; Bank of America took over Merrill Lynch, while JPMorgan took over Washington Mutual.
· The financial sector’s worsening has accelerated since Bear Stearns was jointly rescued by the Fed and JPMorgan from the brink of collapse in March.
· The bailout money does not solve the problems of the economy but nevertheless it’s a necessary thing to do so we can stop the collapse of our economic system.
· More banks could fail if distressed financial assets are not taken off their balance sheets because these assets continue to get worse every day, creating more doubt for the investors and bank depositors.
· Such a situation could force a fire sale of bank assets to please stress from investors and depositors, further deteriorating banks’ balance sheets.
Whole citation by KC Brewster
Zunes, Stephen. The Strategic Functions of U.S. Aid to Israel. November 18,2008 <http://www.wrmea.com/html/us_aid_to_israel.htm>.
· Nearly 241 billion
· Donations for 2002 set a new high, rising 1 percent over 200’1
· Estimated 240.92 billion in gifts equaled 2.3 percent of US gross domestic product
· US gave between $6 and $15 billion in foreign aid between 1995 and 1999
· The US ranks twenty-second of the 22 most developed nations
· US manages giving 0.1 GDP
· The USA is a generous nation of people
· USA enforces aggressive policies and aggressive pursue economic interests in all the other countries.
· Foreign aid grants and loans $74,157,600,000
· US have offered Israel an additional $2 billion in loan guarantees.
· $16.4 billion in Us military loans were converted to grants.
Notes done by: Korhan Yeniceli
http://www.fool.com/investing/general/2006/11/08/what-causes-a-recession.aspx
The Motley Fool
Legal information: 1995-2008 the motley fool
· What causes a recession?
~ Increase in oil prices.
~ Stock market falls unlikely.
~Analysts say stock sell-off may cool the economy.
~Households saving more.
~ Overspending and high taxes
~ Asian contagion
~Corporate fraud and investor pessimism
Notes by KC Brewster